- The deputy governor of the People’s Bank of China stated that Bitcoin and cryptocurrencies are investment tools.
- China will issue new regulations in the future as stablecoins are gaining traction as payment solutions.
- VeChain and NEO prices soar as the recent announcement was made.
China now considers cryptocurrencies like Bitcoin as investment tools rather than currencies. China-friendly VeChain and NEO prices surge by 40-65% amid the announcement.
Stricter regulations will arise as stablecoins gain traction
Li Bo, the deputy governor of the Chinese central bank, spoke at the Boao Forum regarding the regulatory issues around Bitcoin, and other cryptocurrencies, including stablecoins.
The deputy governor further stated that Bitcoin is an alternative investment asset and not a currency in itself. The main role that cryptocurrencies should play in the future is as an investment tool or alternative asset, he said. Li stated:
Since it is used as an investment tool, many countries, including China, are studying what kind of regulatory environment should be applied to this investment method, and to ensure that speculation in such assets will not cause serious financial risks.
The use of stablecoins as payment solutions could quickly gain traction; however, Li emphasized that even stricter regulations are needed than the rules currently in place for Bitcoin. For stablecoins that are issued by private companies, Li said that they must be subject to “strict supervision like banks or quasi-bank financial institutions.”
China is well-known as a non-crypto-friendly country as it does not consider cryptocurrencies as legal tender. The Asian country imposed a blanket ban on all initial coin offerings (ICO) and shut down crypto exchanges. However, in mid-2019, the world’s second-largest economy declared Bitcoin as virtual property with value.
Chinese tech giant Meitu also raked in $100 million in Bitcoin and Ether as part of the firm’s treasury allocation plan. The Xiamen-headquartered tech firm further believes that cryptocurrencies are better stores of value than fiat.
The central bank, the People’s Bank of China, further clarified that owning Bitcoin in the country is legal. Mining operations are also legal, as China accounts for around 65% of all Bitcoin mining globally. A recent electrical grid blackout in the Xinjiang province led to a decline in Bitcoin’s hash rate.
Before new regulatory measures are introduced, current measures and practices will be maintained.
VeChain and NEO prices soar with China’s announcement
While the rest of the crypto market is just waking up from the massive price crash this weekend, VeChain and NEO have witnessed staggering price surge – gaining 40% and 65%, respectively, in the past 24 hours.
VeChain price currently sits at $0.27, and NEO price climbed to $123.33 in the early Asian trading hours on April 19.
The Chinese-based NEO and VeChain cryptos witnessed similar price growth, outpacing other digital assets when China’s President Xi Jinping announced several blockchain initiatives in the country.
The crypto market was sent into a meteoric bullish rally, especially the cryptocurrencies with strong links to China. NEO gained over 70% when Xi announced the country’s push for blockchain, while VeChain surged by over 110% in the following two weeks. In contrast, the rest of the cryptocurrency market gained an average of 17% over the same period.
Follow us on Telegram
Stay updated of all the news
Coinbase to list Arbitrum with experimental label, warns users to send ARB only over Ethereum network
In a March 22 announcement, Coinbase revealed intentions to support Arbitrum’s upcoming native token, ARB, by listing it for trading on the largest cryptocurrency exchange in the United States. The disclosure was bountiful, featuring several other details for Arbitrum users.
TRON price crashes 12% as SEC charged founder Justin Sun for violating securities laws
TRON price plummeted on March 22 after the cryptocurrency became the new target of the ongoing regulatory crackdown in the United States. The Security and Exchange Commission (SEC) is now looking into Tron founder Justin Sun’s company and related entities of the altcoin’s ecosystem.
ApeCoin price at crossroads, looks to retest February highs amid the alt season but there's a catch
ApeCoin price is at crossroads after trading within a symmetrical triangle on the one-day chart. The altcoin is in a neutral formation reliant on the impending breakout that will determine the direction of the next move. The pattern contains at least two lower highs and two higher lows.
Dogecoin Price Forecast: DOGE coils up for an upswing as alt season clocks in
Dogecoin price has heeded the invite to the alt season to trade with a bullish inclination and record more gains for investors. Despite overhead pressure due to multiple supplier congestion zones, DOGE bulls have put the right foot forward and now the meme coin is preparing for another northbound move.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.